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The new system can make you a lot of money, but it also requires a huge amount of money to be put in to it first. My fully upgraded town is giving me 2 million money per hour, but I probably put around 1 billion into it to reach that point. So it definitely feels like a later game thing before it starts being profitable.
You earn income every hour, and if you just let it run, all you have to do is go in once in a while and repair everything, which is a one button click. You should be pulling in enough resources that you will still make money and just takes a second or two to repair. It seems balanced enough to not drain you. The only thing to really decide is if there is anything worth pulling out of the trader. There are some combat scrolls that are kind of nice. Every little bit helps. There really isn't much left to do after that.
EDIT: Oh, it does seem you have to heal up your population from time to time. That's what those herb and potion icons are for that aren't labeled or as far as I can tell are described anywhere.
Why they would make town halls such a high level requirement is beyond me... none of the bioms have any you can build? I guess they figured most people would have been further along and they just didn't bother to actually test it out building a city from scratch. I'm almost done with mine and it does end up being at least not a drain on you, but why they made it dependent on outside income to build is crazy. Get your thief working or build dragon javelins.... or keep asking for that disable township completely feature.
I never have to Cook again or make Potions, and a lot of the Consumables are pretty useful.